Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Bitcoin *is* an inflation hedge in first place. Satoshi expressly made it so.
by
DooMAD
on 03/08/2022, 21:56:14 UTC
⭐ Merited by JayJuanGee (1)
A few more things that many people don’t get:

0. The Bitcoin supply is still inflating.  In its earliest years, especially before the first halving, Bitcoin had an extremely high rate of inflation.  The inflation rate is now low; and in a few years, it will be negligible.  Meanwhile, Bitcoin has already behaved as economically deflationary overall, due to the next item.

I posited in the "wrong" topic that there will come a time where Bitcoin effectively becomes deflationary.  People often accidentally lose access to private keys causing sums of BTC become unspendable.  If that rate of loss becomes greater than the rate new BTC enters circulation, then at that point Bitcoin is officially deflationary, but we'll never know for sure when that actually occurs.  Is that a fair premise?  Unless my reading comprehension is failing me, no one chimed in to provide a counter argument to it in the other topic.